Quick Summary: Software development outsourcing has become increasingly popular over the years, allowing businesses to access a global pool of talent, reduce costs, and increase efficiency. However, outsourcing is not always the best solution for every project, and there are certain factors to consider before deciding to outsource software development. In this article, we will explore when and why you should consider software development outsourcing, as well as the benefits and potential risks involved in this approach.
Technology is the number one force that is changing the face of business today. Continuous evolution is transforming the way companies carry out their operations.
Businesses competing are in the race to adopt emerging technologies. Every business aims to embrace trending technologies, thus, the need to introduce effective approaches becomes a necessity.
However, marinating, retaining, and training your in-house IT team has become a time-consuming task. Also, it doesn’t make sense to hire resources when the project is short-term.
This is where shifting your software development operations to a foreign country comes into play.
According to Gartner, more than 80% of companies plan to expand their outsourcing budget by 5% this year. And 37% of small businesses are already doing software development offshore.
Software development outsourcing can be an effective strategy for businesses that lack the necessary expertise, have tight deadlines, want to reduce costs, need scalability, or want to focus on their core competencies. Outsourcing can provide access to a global pool of talent, additional resources, cost savings, and the ability to scale up or down a software development team quickly.
This proven approach has led to many successful projects as it allows a business to focus on its core competencies.
This helps companies to get a competitive advantage in a technologically driven marketplace. But there's a take; before getting started to look at an outsourcing firm, it is always good to know why, when, and when not to outsource.
So, let's get started with the first question;
Recommended Read: All-In-One Guide to Software Development Outsourcing
Why Should You Consider Software Development Outsourcing?
Getting access to a large talent pool of certified web and mobile app developers is one of the biggest advantages of outsourcing.
Moreover, integrating the team of offshore software developers with the in-house team helps to increase the overall productivity, credibility, and reliability of your business.
The other advantage of offshore software development is building a team of reliable dedicated developers that can help you implement the ideas faster, and launch your products or services early in the market.
If you are new to this domain, then you must continue reading and learning about all the benefits of software outsourcing.
Reasons to Shift towards Software Development Outsourcing
You can save up to 60 - 70% of the total development cost while working with an offshore software development company. This is due to the difference between the hourly rates of software developers across different countries.
Apart from low hourly rates, your offshore software development partner will be responsible for providing all the hardware/software-related requirements to the developers.
On the other hand, hiring in-house employees are expensive. It involves the monthly salary, arranging all the software and hardware equipment, infrastructure cost, and other employee benefits.
2. Time Rules
Think about the weekly hours that are spent on managing the in-house team. You don’t have to waste time accustoming new offshore programmers and making them adjust so they understand the project and then start working on it.
With the number of day-offs, national holidays, and different in-house team no-work days, the project completion gets delayed.
"Offshore software development from a country like the USA to India is an ideal example; where you can get a lot of benefits in terms of launching products to the market early. Especially during the winter holidays in the USA."
A team of dedicated remote developers is likely to be inclined to work full-time even on your company’s native office's off days. This eventually helps in boosting development speed while maintaining the workflow without even working overtime.
Time is money, and everyone is aware of this fact. The fruits of working with an offshore software development company are visible as soon as you start working with them.
Experienced professionals are aware of the market scenario, so they help save your time, money, and effort.
If you think your in-house team is not efficient enough to handle the project, it is best to hire offshore developers that will help save you valuable time.
This saved time can be proficiently utilized by developing something amazing and overtaking the vertical.
3. To Manage the Peak Demand Level
Sometimes the demands are at their peak and all the in-house members are employed to meet those deadlines. So, that is the time when you should hire programmers from India to meet the surging demand with increased efficiency levels.
An experienced team having experienced professionals will help you curate better products with security patches.
Related Read: Why IT Outsourcing in India is the Best Decision
4. Competitive Growth
It becomes challenging for the in-house team to focus on their work and stay universally updated and competitive at the same time. When it comes to staying ahead in the race, businesses need to embrace market trends.
Companies that provide software development offshore as a service, work with a global clientele. This urges them to hire developers that are certified, work on technologies that are stable, and deliver services of international standards.
Needless to say, the higher the skillset, the better the delivery.
5. Experts on the Board
There is a long list of offshore development companies across the globe having special in different technologies, and this number keeps growing.
Therefore, software developer outsourcing helps in giving access to a huge pool of talent who know how to kick off the project successfully. You can narrow your search and find an offshore development team with relevant skills and years of experience in their field.
Well, every IT company has a setup approach having an established workflow, pre-defined procedures, and well-trained professionals.
What is more important is a qualified team of experts that can handle the project development process and face all possible challenges.
6. Different Engagement Models for Different Companies
The best thing about software development offshore is, it works for any business at any stage.
If you have a start-up that is focussing on developing a Minimum Viable Product (MVP), it makes sense to hire a remote development team and built the prototype within your budget.
For mid-sized firms, you get a versatile team of designers, developers, quality analysts that work under a project manager. The key feature is the team adjustability depending on the business scalability.
The best engagement model out of the three (time & material, fixed-price & dedicated team) is a dedicated team model as the offshore team becomes a department of your business offering exclusive development services.
7. Exceptional Support
Completion of your development is not the end of the process. You always need maintenance and after-sales services to ensure bug-free performance.
When you take the help of an offshore development company, you get quality support and regular maintenance services. Keeping the time zones in mind, they have the caliber to provide round-the-clock services to ensure you are competing well in the market.
8. Comprehensive Services
There is a lot beyond coding that contributes to a product or service. Project supervision, UX design, profound testing, and deploying the right experts, are all that takes to make the project successful.
The offshore software development team is jam-packed with specialists in various fields.
It is very important to establish a solid, vibrant team with a signature style. Having years of experience helps in building such a team.
When to Outsource Software Development?
Before you choose to shift software development offshore make sure you understand your requirements and the scope of your project. Knowing your needs helps in uncovering whether software developers outsourcing will be the best option and which model you will be choosing.
Here are the scenarios when software development outsourcing makes the most sense:
Ready to Reduce the Liabilities?
When you choose software development outsourcing, it is important that they are capable of working on a project without maximum supervision. To maintain sustainable business growth, you should be sure that your team has the ability to drive positive results.
However, having so many tasks in hand can build liabilities that require a lot of time and money.
By having an offshore development company by your side, you can minimize risks and work on a budget while working with a reliable offshore delivery center.
Outsourcing helps in reducing liabilities while maximizing operational efficiency by hiring tech experts.
1. Mistakes are Costing too Much
Distracted too much by routine tasks, companies sometimes tend to neglect some important details that can prove to be fatal. This happens when your team is either inefficient in taking care of the project or multitasking.
Small mistakes can sometimes cost too much. That is the right time to consider outsourcing and hire offshore developers that know how to deliver exceptional results.
2. Budget is Tight
Hiring new in-house employees is always expensive, and this will make you think that your budget is a tightrope.
With high salaries and other benefits like sick leaves, infrastructure, etc., it is always good to find the best offshore development company for collaboration.
3. You Need a Multitude of Development Resources
For an offshore software development company, the sky's the limit. This is in terms of the availability of resources and technologies in use. The larger is the network of the offshore partner; the bigger is the ground for the technologies you cover.
4. You Want to Save Time
In today’s competitive world, no business can afford to waste even a minute. If software development is not your USP, outsource it to a professional offshore delivery center and save a lot of your valuable time.
By saving this time, you can boost your focus on generating more business for your company. Relieve your in-house resources from working on something that is not their forte at all.
Instead, it is good if they focus on key business goals. So, when you hire top offshore developers, you get more time to focus and propel business growth.
5. Superior Quality
If your in-house team lacks specialized skills, there are chances that the end results will not be up to the mark. This drastically affects your business credibility.
Whenever you outsource your project to a reliable offshore development team of developers, you can be assured of highly-skilled IT experts who commit to delivering high-end software quality and security.
Building software offshore is their forte. So, it's best to use their potential to the fullest and build high-quality, cutting-edge solutions for your business.
6. Hiring Flexibility
Hiring a full-time employee to work on a short-term project isn’t worth it.
For example, you need to build an enterprise solution; hiring full-time developers isn’t good as there won’t be any more projects to keep them busy after this project is completed.
So, you have to hire a developer on a monthly basis and provide all the employee benefits regardless of the productive work he/she will be doing.
In this case, software development outsourcing gives the utmost flexibility. As per the project requirements, you can either choose how much to outsource and for how long. This helps in saving a lot of effort.
Want to understand the complete process of hiring dedicated developers? Here's an overview.!
7. Mitigating Risk
Outsourcing is an effective process of mitigating risks and harnessing the advantages of outsourcing offers.
Instead of overloading your in-house team with heaps of work, diversify your business risks by splitting key operations and components among the company offering the best software outsourcing services.
When Not to Outsource?
Software development offshore serves as a very useful tool to juggle limited resources but it is not necessary that it will provide a solution to all of your IT-related needs.
If you are outsourcing a few tasks of your business, the following are a few pointers on when not to outsource;
1. Are you an Expert in Your Competencies?
You know the core business model of your company, right? Knowing the critical business aspects helps you determine the segments you shouldn’t outsource.
When you feel your in-house staff has the required skill and expertise, it is advisable not to outsource.
2. If Outsourcing is too Expensive
Cost-effectiveness is one of the major advantages of offshore development companies. But if the outsourcing company is offering a quote that is too expensive or providing cheap software developers, you should look for other reliable offshore development firms that offer better services at a genuine cost.
3. In Case There is a Loss of Control
Whether you keep the process in-house or outsource it, at last, you are accountable for all the work. The responsibility entails that you monitor the progress of the task on a regular basis.
Outsourcing isn’t feasible if the offshore software company is unwilling to give access to documents and files related to your project.
To make your offshore development journey successful, you must have all the information about the project. Plus you need to keep up with the development process to ensure everything works smoothly.
In case you lose control, software development offshore can turn out to be a bad idea.
Outsourcing: A Simple Way to Grow your Business
By hiring an offshore dedicated team, your company can free up valuable resources and make them focus on what matters while making the wheels of a business turn.
Offshore software development is the best choice in the age of technological advancements.
Look for a reliable company having the right skills, tools, and expertise that will understand the culture of your company and deliver the project better than your expectations.
Ready to work with the top offshore developers? Connect with our business head now and get a free consultation on your project.
Frequently Asked Questions (FAQs)
Why do companies outsource software development?
How do I choose a software development outsourcing partner?
How can I manage the outsourcing process effectively?